Miners lift JSE, boosted by oil price

PREMIUM


The JSE closed higher on Monday, as a rising oil price and weaker rand gave some support to miners, although this put pressure on banks and general retailers.Trade on global markets is somewhat cautious, with investors waiting for direction from ongoing risk events, including US-China trade talks and Brexit negotiations.US and Chinese officials are expected to meet on Tuesday, while European Union leaders will consider a request by British Prime Minister Theresa May for a Brexit extension on Wednesday.The rand was brushing up against a resistance level of R14.08/$, but further strength could follow expectations of lower interest rates in the US, Investec chief economist Annabel Bishop said.The currency has been boosted recently by a favourable opinion by Moody’s Investors Service on SA’s credit rating, as well as signs of progress in US-China trade talks.The all share rose 0.36% to 57,985.8 points and the top 40 rose 0.37%. Gold miners added 4.32% and platinums 3.19%.General retailers lost 1.16% and banks 0.44%.Brent crude oil has risen amid fears of supply disruptions in Libya, where an armed conflict is escalating.Corporate news was light, and no major results are expected in the week ahead.Mining and manufacturing numbers for March are due on Wednesday.They will offer further detail on SA’s economic performance in the first quarter of 2019.Diversified miner Anglo American gained 1.28% to R404.78 and BHP 1.27% to R357.17.Kumba Iron Ore jumped 5.76% to R468.94.Harmony Gold rocketed 7.5% to R28.37 and SibanyeStillwater 5.5% to R17.25. Amplats rose 5.02% to R835. Retailer Mr Price lost 2.58% to R191.01.Ayo Tech fell 6.67% to R14. Its former chief investment officer, Siphiwe Nodwele, told the inquiry into the affairs of the Public Investment Corporation that the technology company had been grossly overvalued.Sirius Real Estate gained 0.86% to R11.75.It said earlier in a trading update that annualised rental income had increased about 10% to €87.7m (R1.4bn) in the year to end-March.Pick n Pay rose 4% to R69.90.The supermarket chain store said earlier it expected headline earnings a share for the 53 weeks to end-March to have risen by between 20% and 30%, compared with the prior matching period. Turnover grew 9.6% in the same period.Losses by aircraft manufacturer Boeing put pressure on US markets, and investors are looking forward to a spate of results from major banks later in the week.

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